Soon, you may not have to budget as much for daycare.
The cost of childcare is often one of the biggest financial shocks that new parents face.
Quality daycare is extremely expensive in the United States. It forces many people to either give up work to stay at home and take care of their children or to drain their bank accounts paying for childcare.
Soon, this could change if President Joe Biden has his way. The president has proposed new legislation called the American Families Plan, which could lead to affordable childcare for families across the country.
Here’s how it would work.
The American Families Plan provides much-needed support for childcare
The American Families Plan that President Biden has proposed would cap the amount of money that families are required to pay for childcare. This would be achieved by establishing a sliding scale structure in which your income would determine how much you’d be required to pay.
Specifically, low-income working families could pay as little as $0 for childcare, while families with incomes up to 1.5 times the median in their state would pay a maximum of 7% of their household income.
The American Families Plan also provides money for childcare providers to help them offer high-quality early childhood education. And it gives families who take advantage of subsidized care a choice of many different options, including inclusive public schools, Early Head Start programs, family child care providers, and private child care centers.